Home Buying in Bowie>Question Details

Keyasplace, Home Buyer in Baltimore, MD

What does it mean when a short sale is listed as having 900 hours to kick out, (3rd party appr contingency) but it's been under contract for 8?

Asked by Keyasplace, Baltimore, MD Sun Dec 20, 2009

months? I saw a home that I was interested in purchasing, which is a short sale but it's listed as having 900 hours to kick out. It went under contract 8 months ago with a 3rd party approval contingency that expires January 31st. What exactly does this mean? What should my next steps be if I'm really interested in purchasing the property?

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The hours may have been inputted into the system incorrectly but 900 hours only equal a little less than thirty-eight days. Thirty eight days to have a response from the third party (the selling bank) is actually a strong commitment from the listing agent. I typically complete one to three short sales a month and I request that the buyer and buyers agent grant me forty-five days. With many new banks joining equator (which is the system we use to complete short sales and communicate with the bank through) there have been many brake downs and failures on behalf of the banks and their untrained negotiators.The 3rd party approval contingency is a regular in these deal and that time frame is normal. If you have any additional questions please feel free to give me a call at the numbers referenced below. I am a Certified Distressed Property Expert and will make sure you fully understand the short sale process. Please make sure your agent has a proven record of successfully completing short sale before you sign any listing agreement.

View foreclosures, homes for rent or purchase as well as obtain valuable information on the home buying and selling process at http://www.stevequeen.com. I specialize in Short Sales.

Steve Queen Real Estate Professional
Exit Realty 200K Yearly Club
Prince Georges County Silver Award Winner
Prince Georges County Distinguished Sales Club Member
Cell (202) 367-4348
Office (301) 459-5040
Fax (301) 576-4599
Email: squeenofexit@aol.com
View Properties Here: http://www.stevequeen.com
Web Reference: http://www.stevequeen.com
0 votes Thank Flag Link Mon Jun 6, 2011
Vladimir is correct, it may very well be an error on the agents part when inputting the info into the system. I'd have my agent call to ask, I'd also find out what exactly IS the kick out clause???? There are many different reasons for a kick out clause, it would help if you knew what kind of offer you were up against.

Much success to you
Web Reference: http://www.alqamarmalik.com
0 votes Thank Flag Link Mon Dec 21, 2009
Hi Keyasplace,
This could easily be a wrong entry on behalf of the listing agent. I do a few short sales a month and am not aware of a kick out clause that could play a role in the transaction. The 3rd party approval contingency is a regular in these deals. This means that the current buyer gave the seller until 1-31 to get 3rd party approval. If the seller does not provide proof of approval by that date, the buyer could technically walk and get the deposit back. It is not uncommon, however, for the buyer to extend that contingency period depending on the progress of the process and the underlying deal that they believe he/she is getting.
Your next steps should be to have your agent get a hold of the listing agent and ask some questions on the status of the negotiations with the lender and the status of current offer. Believe it or not, but the information that you're looking at might not be very accurate as some listing agents do not update it timely.
Based on the answers that your agent receives, you should plan out a course.
If you're working without an agent, please stop! Short sales are not even close to being an easy transaction and it is very easy to lose time and money without propert representation. As a Certified Distressed Property Expert I am trained to deal with short sales when representing both buyers and sellers. Do not hesitate to contact me if you have additional questions.
Vladimir Kats, MBA, CDPE
0 votes Thank Flag Link Sun Dec 20, 2009
You may need to wait til 1/31/2010 to see what happend to the contract. Tipically, short sales take a long time to complete. Back up offers are sometimes accepted by the bank. I would not know the answer to this question till I spoke with the listing agent and know where the property is located.
Web Reference: http://www.aniamiller.com
0 votes Thank Flag Link Sun Dec 20, 2009
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